Ameritrans Reports Fourth Quarter and Fiscal Year June 30, 2006 Results.

NEW YORK -- Ameritrans Capital Corporation (NASDAQ: AMTC, AMTCP) yesterday reported financial results for the fiscal year and quarter ended June 30, 2006. For the quarter ended June 30, 2006, investment income was $1.42 million compared to $2.19 million during the prior comparable period ended June 30, 2005. Investment income for the quarter ended June 30, 2005 included interest income, fee income and leasing income totaling $1,451,111 and net gain on sale of securities of $738,874 totaling to $2.19 million.

For the fiscal year ended June 30, 2006, Ameritrans reported investment income of $5.29 million as compared to $6.13 million for the prior year. The decrease in reported investment income for fiscal year ending June 30, 2006 is attributable primarily to the fact that a significant net gain on sale of securities of $688,874 was reported in the prior year. Interest income, fee income and leasing income totaled $5,290,842 during fiscal year ended June 30, 2006 as compared to $5,443,192 for fiscal year ended June 30, 2005. The decrease in interest income is primarily the result of a decrease of $2,345,024 in the net loan portfolio at June 30, 2006 as compared to June 30, 2005, due to payoffs and settlements of loans receivable in excess of new loan fundings and due to the impact of lower average interest rates charged on new or modified loans. The decrease in leasing income was primarily due to sales of medallions and autos that were previously leased.

Net Loss for the fiscal year ended June 30, 2006 was $218,680, while Net Income for the fiscal year ended June 30, 2005 was $112,774. Net Income is calculated before payment of dividends on preferred stock of $337,500 in each the aforesaid fiscal years.

The Company's loan portfolio at June 30, 2006 was $49.5 million versus $51.9 million at June 30, 2005.

Gary C. Granoff, President of Ameritrans, stated, "The fiscal year ended June 30, 2006 was a transition year for the Company. During the year we successfully completed a capital raise for use by Ameritrans Capital Corporation, as the parent company, to make loans and investments which are not subject to SBA Regulations. Initially we used the net proceeds from the capital raise to reduce our outstanding bank debt, and now we are making new diversified loans and investments for Ameritrans with those funds. Our earnings this past fiscal year were negatively impacted by the continuing rise in interest rates and in taking additional charge offs and loan reductions, and associated expenses in completing the foreclosure of defaulted loans in our Chicago taxi portfolio. By the end of the fiscal year, the Chicago taxi portfolio had greatly improved. Market conditions in Chicago have strengthened significantly with prices increasing for medallions while defaults are at their lowest level over the past four years. We are looking forward to growing our portfolio with expanded opportunities during the fiscal year ending in June, 2007.

Ameritrans Capital Corporation is a specialty finance company engaged in making loans to and investments in small businesses. Ameritrans' wholly owned subsidiary Elk Associates Funding Corporation was licensed by the United States Small Business Administration as a Small Business Investment Company (SBIC) in 1980. The company maintains its offices at 747 Third Avenue, 4th Floor; New York, NY 10017.

This announcement contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those presently anticipated or projected. Ameritrans Capital Corporation cautions investors not to place undue reliance on forward-looking statements, which speak only as to management's expectations on this date.

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